BÀI GIẢNG 8: CHIẾN LƯỢC GLOBAL LOGISTICS pdf

GLOBAL LOGISTICS MANAGEMENTLECTURE 8: GLOBAL LOGISTIC STRATEGIES... 1 Definition of Global Logistic Global logistics is defined as the design and management of a system that directs and

GLOBAL LOGISTICS MANAGEMENT

LECTURE 8: GLOBAL LOGISTIC

STRATEGIES

 1 Definition of Global Logistics

 2 Barriers to Global Logistic Operation

 3 Basic conditions for GLO

 4 Global business organization

 5 Some specific problems with GLO

 6 Strategic competencies needed for an efficient GLO

 7 Strategies for Global Logistic Operation

 8 Summary

1 Definition of Global

Logistic

Global logistics is defined as the design and management of a system that directs and controls the flows of materials into, through and out of the firm across

national boundaries to achieve its

corporate objectives at a minimum total cost

2 Barriers to Global Logistic Operation

true global operations need so many resources that they are

limited to very large companies

customers in different countries may demand different types of products

products may have features

which mean that they are not

suitable for global operations

2 Barriers to Global Logistic Operation

global products of any kind are not viewed favourably by some customers( Sony, Toyota, Pepsi)

organisations lack the human

and technical resources needed

to work globally

organisations may not be able to build the right structures or

design strategies that work

globally

2 Barriers to Global Logistic Operation

 managers in different regions have fundamentally different objectives for themselves and the organisation

 other cultural and economic

differences make co-ordination too difficult

 each country, has different

infrastructure, facilities and

capabilities that make common

operations impossible

3 Basic conditions for GLO

 Outsource logistics

 Have operations with limited needs

of logistics

 Concentrate production and

sourcing in one area and then sell globally

 Or concentrate production in one

area and source and sell globally

 Use postponement to move the

finishing of production down supply chains

 Operate as a local company

4 Global business

organizationFirms may organize as the following

forms

 National companies

 International companies

 Multi-national companies

 Global companies

There are clear benefits of moving towards global operations (e g

expand market and economies of scale)

5 Some specific problems

with GLO

 Political and legal systems: each

country has its own political and legal systems so international company must adapt to local environment

 Economic conditions: developed

countries vs developing countries

 Technology available: technological

difference may cause extra operational cost

 Infrastructure: potential extra

transportation cost

 Social systems and culture: extra cost may be incurred due to cultural training

5 Some specific problems

with GLO

 Finance: e.g exchange rate fluctuation, international financial management

 Competition in logistics: global

company vs local company

 Geography: geographical difficulties

increase cost for transportation

 Customs: Each country or economic

zone has its own policy on customs

 Documentation: many types of

documentation depends on each

country E.g potential extra cost

( corruption)

6 Strategic competencies

needed for Efficient GLO

Positioning

approaches to guide global operations

Integration

to do it creatively

Agility

competitiveness and global customer

success

Measurement

global operations

7 Strategies for Global

Logistic Operation

 Licensing or franchising: less risk of

failure but less control of logistic system

 Exporting finished goods: the need to set up local business partner for

distribution, small risk, less profit

margin

 Setting-up local sales and distribution networks: higher investment, better

control and higher profit margin

7 Strategies for Global

Logistic Operation

and assembly: involve in global and

regional logistic High initial investment, high risk, lower cost of operation

risk, shared knowledge,partly control,

fast access to local distribution channel

investment, full control, high risk, high

profit margin and can get competitive

advantages locally.

 Global logistic operation has to face with many barriers

 Some specific factors have great

influence over GLO to be efficiently operated

 In order to move global successfully, firms need strategic competencies

 According to local environment,

global companies must choose

appropriate strategies to expand its supply chain